Posted on 04/26/2006 7:25:24 AM PDT by Grampa Dave
ECONOMIC REPORT Stunning 13.8% increase in new home sales
Median prices down year-over-year first time since Dec. 2003 By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- New home sales unexpectedly increased by 13.8% in March to a seasonally adjusted annual rate of 1.213 million, the highest level of the year, the Commerce Department estimated Wednesday. The increase more than reversed the 10.9% decline in sales in February. It was far stronger than the mild increase to 1.10 million annualized that was expected by economists surveyed by MarketWatch. See Economic Calendar.
Combined with the small increase reported in existing home sales on Tuesday, the report shows the housing market was much stronger in March than anyone had reason to believe. See earlier story. Other housing market indicators, including mortgage applications, housing starts and builders' sentiment, are pointing to a softer housing market.
The strength in home sales, if it persists, could keep the economy growing faster than the Federal Reserve wants and could lead to higher interest rates than now expected. See our complete coverage of the Fed. New home sales are down 8.2% year-to-date. Read the full report.
The government cautions, however, that its housing data are subject to large sampling and other statistical errors. The margin of error is so large, in fact, that the government cannot say with confidence that sales rose at all in March.
It can take up to six months for a trend in sales to emerge. New home sales have averaged 1.22 million per month over the past six months, down from 1.23 million in February and 1.30 million in November.
The inventory of unsold homes on the market increased 2.8% to 550,000, representing a 5.5-month supply at the March sales pace, down from 6.3 months in February. Median home prices fell 2.2% year-over-year to $224,200. It's the first time prices had fallen year-over-year since December 2003.
In March, sales rose 35.7% in the West, reversing the 30.3% drop in February. Sales increased 6.9% in the South, 10.9% in the Midwest and 4.7% in the Northeast.
In a separate report, the Commerce Department said orders for durable goods increased 6.1% in March, including a 71% gain in aircraft orders. Bookings were solid across most industries. See full story.
Rex Nutting is Washington bureau chief of MarketWatch.
Now we will hear from the negative nay boobs, who think being negative is being conservative.
Worst economy since HOOVER!!!!
It stopped raining.
Impeach Bush! LOL
March was a good month in this area for existing homes. I believe that every new home including those not completed are sold in the county.
LOL-You better buy some gold, the FIAT money system will DOOM us all to servitude, then the Mexicans will take over and 300 people will be living in a McMansion right next to you, and chickens will be running around the yard!!!
Well this stinks .. more good news
No, the worse economy since the last ice age and global warming started.
I have been reading the naysayers giving us the "the housing market is going to collapse" line for some time. And also some say the housing market has nothing to do with the economy surge, and some who say Bush's tax cuts have nothing to do with home buying increase (since 2000), blah blah blah...When it comes down to it, the only thing that matters is what the WH does and what the WH says. And they have always done what they said they will do, too.
Worst economy since Eve stopped buying apples.
If the coyotes don't eat them, we will. We love free range chicken.
Herbert Hoover ROCKS!!!
I hate bad news... (sarcasm)
We have had rains since our New Years floods and for most of March.
The sales page of existing homes was the largest since the last sunny days or our last Indian Summer.
Yes, this may be too much good news for us and bad news for the nay boobs.
Real Estate new Bubble ping!
Now that is good news in my part of the country!!!!!
suicide watch :)
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